Polygon [MATIC] sees uptick in these metrics, what does the future hold

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  • MATIC trans­ac­tion surged con­sid­er­ably, and accu­mu­la­tion also increased. 
  • NFT space wit­nessed decline and mar­ket indi­ca­tors were bearish. 

Poly­gon [MATIC] wit­nessed a mas­sive surge in trans­ac­tions as the met­ric crossed $40 mil­lion in val­ue on 24 March. MATIC was the only top-10 cryp­to that reg­is­tered these num­bers. Apart from Poly­gon, Fetch [FET], and The Sand­box [SAND] reg­is­tered sim­i­lar growth. 

Read Polygon’s [MATIC] Price Pre­dic­tion 2023–24

It was also inter­est­ing to note that MATIC accu­mu­la­tion by whales was on a rise. Santiment’s chart revealed that MATIC’s sup­ply held by top address­es went up over the last week, reflect­ing the investors’ con­fi­dence in the token. 

Source: San­ti­ment

Polygon gains in popularity 

Not only did whales accu­mu­late more MATIC, growth was also not­ed on oth­er fronts. For instance, Dune’s chart indi­cat­ed that MATIC’s unique users were on an increas­ing trend, indi­cat­ing more usage and adop­tion of the network. 

Though there were sev­er­al rea­sons for this growth, one of them can be attrib­uted to the recent part­ner­ship of MATIC with Immutable, a lead­ing Web3 gam­ing platform. 

Source Dune

A quick overview of Polygon’s NFT space

While the num­ber of unique address­es was ris­ing, a decline was reg­is­tered in NFT sales. Accord­ing to CRYPTOSLAM’s chart, MATIC’s NFT sales vol­ume declined by over 38% in the last sev­en days. Not only that, but after spik­ing dur­ing late Feb­ru­ary 2023, MATIC week­ly vol­ume on Poly­gon mar­ket­places declined sharply. 

Source: Dune

Despite the decline in the NFT ecosys­tem, Poly­gon Dai­ly, a pop­u­lar Twit­ter han­dle that posts updates about the network’s devel­op­ment, tweet­ed about the most trad­ed NFT col­lec­tion on OpenSea. As per the tweet, Col­lect­Trump­Cards once again topped the list, fol­lowed by The Sand­box and Lens Protocol. 

Other metrics looked decent 

Things were look­ing pret­ty good for MATIC in terms of its on-chain per­for­mance. For instance, MATIC’s exchange reserve decreased, sug­gest­ing less sell­ing pres­sure. The token’s sup­ply out­side of exchanges also increased, which is a typ­i­cal bull signal. 

Thanks to the mas­sive surge in trans­ac­tions, MATIC’s net­work growth remained high last week, indi­cat­ing that more new address­es were used to trans­fer MATIC. Addi­tion­al­ly, more tokens were trans­ferred among mul­ti­ple address­es, which was evi­dent from look­ing at MATIC’s spik­ing veloc­i­ty on 21 March. 

Source: San­ti­ment

A bear takeover? 

Though the met­rics were fine, MATIC’s price action turned bear­ish late­ly. As per Coin­Mar­ket­Cap, the token’s price declined by over 1.8% in the last 24 hours. At the time of writ­ing, it was trad­ing at $1.11 with a mar­ket cap­i­tal­iza­tion of more than $9.6 bil­lion. Polygon’s dai­ly chart also gave a bear­ish notion and sug­gest­ed a fur­ther price decline.

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The MACD dis­played the pos­si­bil­i­ty of a bear­ish crossover. MATIC’s Rel­a­tive Strength Index (RSI) reg­is­tered a slight decline, which was bear­ish. The Bollinger Band’s find­ings indi­cat­ed that MATIC’s price was in a less volatile zone, fur­ther decreas­ing the chances of a north­bound break­out in the near term. 

How­ev­er, the token’s Mon­ey Flow Index (MFI) remained bull­ish, as it was mov­ing above the neu­tral mark. Com­bin­ing that with the upcom­ing zkEVM launch, the pos­si­bil­i­ty of a trend rever­sal can’t be ruled out. 

Source: Trad­ingView

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